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Kenito
Site Admin
Joined: Wed Feb 11, 2009 1:30 am Posts: 656 Location: Rosarito, Baja California, MX
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 Some simple suggested rules of buying in Mexico
Here are some simple suggested rules for the start of a successful real estate transaction. If you have comments based upon your own experiences, please feel free to REPLY.
Rule #1: Find an agent that is a member of a reputable real estate organization. Just because they pay dues and pass a few basic membership requirements does not guarantee much, but it is a strong indication of their willingness to participate as a responsible professional community. In Rosarito and Ensenada that would be AMPI and/or APIR (for Rosarito) or APIE (for Ensenada). It’s a small community and everyone knows who to work with. In addition, AMPI is also recognized by the National Association of Realtors (NAR) and agents are governed by a Code of Ethics.
If you are already working with an agent, ask them about their membership in one of these organizations. If they tell you they don’t belong, it may not be a “red” flag, but certainly consider it a caution. There may be a reason why they are not members of any of the local Associations.
Rule #2: Get references. Start by talking to someone in AMPI, APIR or APIE. This may require you to learn who the current president of the organization is (probably another angent), and inquire of them. Let them know that you have already met and selected a realtor, but want to find out if that agernt is a member in good standing. Ask if there have been complaints against them and how they were resolved. Not all agents will be members of all organizations, so be sure and ask your agent which organization they belong to.
Try to speak with at least two clients who have worked with the agent – even if they did not buy. Don’t rely strictly on written testimonials. These are easy to get – or fabricate. You want to hear the tone of their voice or whether they hesitate before they respond. Ask the reference what the best part of working with the agent was, and where the agent could have improved. There is always room for improvement so you should expect to hear something, even if it is minor. An agent does not have to be perfect... just decide which imperfections you can work around.
Since you are moving to a new country, it is equally as important that the buyer received support after the sale. Was the buyer dropped like a hot potato when the commission check cleared or did the agent help them with their phone and cable hook up, find a doctor, dentist, dry cleaner, and best of all, a great taco stand?
Rule #3: Beware of some urgency to get you to buy NOW. As the economy changes, there is more misleading advertising. Ads range from claims that there are fire sales where prices are dropping by hundreds of thousands of dollars to homes having great ocean views when they really have an ocean “peek a view.”
There are good deals out there, but they probably aren’t going to disappear in the next 24 hours. If you really want a property, but have not had time to do all your research, put down a refundable deposit and have it held by a reputable company that you and the seller agree upon. Ask to see the previous listing before the drastic drop in price and find out how long the property was on the market. A change in price of $100,000 after being listed for only 24 hours screams mistake, not deal.
Rule #4: Find out if your agent owns property in Mexico. I’ve never been big on, “Do as I say, not as I do.” If your agent is telling you that owning in Mexico is an excellent investment, you deserve to know how committed they are. Over the last four years there have been numerous agents that have easily come and gone because they were on a month-to-month rental.
If you want to be able to call your agent six months or even two years from now, you have a much greater chance of having your agent in the country because they have made the commitment to invest and live in Mexico just like you. With many buyers finding their property on the Internet, you will even find brokers claiming they have offices in Mexico when they neither operate nor live in Mexico. Ask where their offices are located and then stop by to check out the location.
Rule #5: Make sure your agent has experience with your type of purchase. There is a huge difference between buying a built unit and building your own home. We actually own two properties. Our home in Rosarito was already built and we lived there for the 2.5 years it took to build our home in Ensenada. The purchase in Rosarito was easy, smooth and pretty much stress free.
Stressful cannot begin to express our experience with building our home in Ensenada. Now we know, from personal experience, every mistake you should not make and exactly what you should do to protect yourself. There is a huge difference between learning about building a home and building one. If you want to build a house, find an agent who has actually experienced building.
Today, more and more buyers are looking for property in the Valle de Guadalupe wine country. Purchasing property with the goal of making wine is totally different than buying a house or condo. There are considerations that you would never begin to think about in the United States or Canada. Be sure to work with an agent who has experience with this type of purchase in Mexico. If they don’t have personal experience, let them know you don’t have a problem working with an associate of theirs that does have the proper experience. If your agent isn’t willing to share some of their commission to make sure you are protected, maybe they are not the right agent for you.
Rule #6: Ask for documentation on listings. So many times the agent will tell you they have a great listing, but can’t provide you with documentation showing proof of title. There is nothing worse than getting your heart set on a property and then after weeks or months of running around in circles, you find out that the seller doesn’t have clear title. Not only are you out a property you fell in love with, but you have lost time and possibly another piece of property that you would have liked equally as well.
However, it is not uncommon for an agent to get a new listing that could fit your needs, but not have had time to properly research the property. Remember perfection is rarely attainable! That should not be a problem as long as you are aware that there is a possibility you might not be able to make a deal if the research turns up some problem.
Rule #7: Be prepared to become your own best expert. Rarely will you find a “deal” that has everything in a nice neat package. If the agent says he has to go to the government offices to see the property register, invite yourself to go with him. If someone is going to survey and mark the property, try to be there and observe. It pays to have a “gift of gab” when chatting with these people. Don't be damanding, and don't keep referring to “how it is done in the US,” or where ever you are from. It is different here, and it will help you to become as knowledgeable about the process as possible.
Rule #8: Expect delays. Speed is not your friend, so expect to spend a little extra time getting it right. In fact, if you present yourself as not being rushed, it can be to your advantage. If you insist on getting it done immediately, you will get it done fast... not necessarily right.
Rule #9: Don't begrudge others earning a commission or wage. Better you be willing to pay these fees and know about them, than find out later that there were corners cut, or money that was paid privately. No one works for free, and better you pay an honest person a fee or commission than find out later that a person you thought was giving you objective advice, was actually receiving compensation “under the table” which may ultimately cost you more.
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